The Central Bank of Nigeria (CBN) has charged the newly inaugurated Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) to prioritise inclusive lending and ensure that farmers across the country can access credit regardless of collateral constraints or geographic limitations. The directive was issued by CBN Governor Olayemi Cardoso during the inauguration ceremony held in Abuja, where he emphasised the strategic role of agriculture in national development and the need to modernise the Fund’s operations.
Addressing members of the Board, Cardoso described the ACGSF as a pivotal national institution with a 48-year legacy, making it one of Nigeria’s oldest and most impactful development finance programmes. He noted that the Fund has played a crucial role in supporting agricultural production since its establishment, but must now evolve to address the financing gaps that continue to hinder smallholder and commercial farmers.
Cardoso clarified that the CBN’s renewed commitment to the Scheme is not a return to direct interventionist lending—an approach the apex bank is phasing out—but rather a continuation of its statutory mandate to strengthen critical enablers of economic growth. He said the ACGSF remains recognised by law as a key mechanism for supporting the agricultural value chain, particularly at a time when food security is a national priority.
According to the Governor, the primary objective of the Board moving forward is to create a lending environment where farmers no longer face structural barriers such as lack of collateral, location constraints, or administrative bottlenecks. “Our goal should be that a lack of collateral or remote location is no longer an insurmountable barrier to financing,” he said, adding that more Nigerians must be empowered to participate meaningfully in agricultural production.
Cardoso highlighted the paradox in Nigeria’s agricultural sector: despite its massive contribution to national output, employment, and rural livelihood, access to finance remains disproportionately low. Many farmers still rely on informal lending, personal savings, or communal support systems to fund their operations, limiting productivity and scale.
He stressed that modern agriculture requires substantial investment in mechanisation, irrigation, improved seed varieties, storage facilities, and climate-resilient practices—needs that cannot be met without a strong, well-structured credit system. Therefore, the ACGSF must adopt innovative strategies, digital tools, and collaborative models that can reach underserved farmers, including those in remote communities.
The Governor also urged the Board to strengthen partnerships with commercial banks, microfinance institutions, fintech platforms, and state agricultural development programmes. These collaborations, he noted, will help expand the Scheme’s reach and ensure that guaranteed loans are deployed effectively to productive ventures across the agricultural value chain.
Cardoso reiterated that improving agricultural credit penetration is central to the Tinubu administration’s broader economic agenda aimed at stabilising food prices, boosting local production, creating jobs, and enhancing rural livelihoods. He added that the success of the ACGSF will play a major role in reversing Nigeria’s increasing reliance on food imports and in improving resilience against global supply shocks.
Stakeholders present at the inauguration described the Governor’s charge as timely, especially as Nigeria continues to grapple with rising food inflation, climate-related disruptions, and fluctuating commodity output. They noted that strengthening agricultural credit systems is essential to unlocking the potential of millions of farmers who remain excluded from formal financing channels.
The newly inaugurated Board is expected to begin work immediately, reviewing existing operational frameworks, updating lending guidelines, and proposing mechanisms to make guaranteed loans more accessible. Key priorities include digitising loan processes, widening the scope of eligible activities, improving monitoring frameworks, and ensuring that gender and youth inclusion remain at the forefront of agricultural financing.
With agriculture positioned as a cornerstone of Nigeria’s economic strategy, the CBN’s call for an inclusive and efficient credit guarantee framework signals a renewed push toward sustainable food production, enhanced productivity, and a more resilient rural economy.
